Pregled bibliografske jedinice broj: 1249454
Estimation of the optimal internal rate of return for the battery storage system
Estimation of the optimal internal rate of return for the battery storage system // Book of abstracts of the ISCCRO'22 The 4th International Statistical Conference in Croatia
Opatija, Hrvatska, 2022. str. 19-19 (predavanje, međunarodna recenzija, sažetak, znanstveni)
CROSBI ID: 1249454 Za ispravke kontaktirajte CROSBI podršku putem web obrasca
Naslov
Estimation of the optimal internal rate of return
for the battery storage system
Autori
Jurčević, Jura ; Zoričić, Davor ; Dolinar, Denis
Vrsta, podvrsta i kategorija rada
Sažeci sa skupova, sažetak, znanstveni
Izvornik
Book of abstracts of the ISCCRO'22 The 4th International Statistical Conference in Croatia
/ - , 2022, 19-19
Skup
ISCCRO'22 The 4th International Statistical Conference in Croatia
Mjesto i datum
Opatija, Hrvatska, 05.05.2022. - 06.05.2022
Vrsta sudjelovanja
Predavanje
Vrsta recenzije
Međunarodna recenzija
Ključne riječi
battery storage system, internal rate of return (IRR), non-linear mixed-integer optimization
Sažetak
Profitability assessment is an integral part of any decision-making process in economics, especially when considering large power system investments in which case analysis often focuses on the estimation of investment’s size relative to its maximal profitability. Recently, the economic viability of battery storage systems (BSS) has gained attention due to its role regarding the integration of renewable energy sources (RES) into power systems. In this context we propose an approach aimed at viability assessment based on the internal rate of return (IRR) method. Although, many papers in the field of energy economics prefer the use of net present value (NPV) we advocate the use of IRR due to its practicality in decision making and compatibility with the NPV. On the downside, the estimation of IRR is a challenge due to unavoidable non-linear optimization techniques in the estimation process. Relying on such optimization techniques may result in imprecise estimates, time-consuming computational processes or even non-feasible solution sets. The objective of our research is to examine the possibility of applying mixed-integer non-linear optimization technique to estimate the optimal internal rate of return for the battery storage system. We use data for the German power market related to the day-ahead and intraday electricity prices, prices of frequency containment reserves, photovoltaic power generation and load data for 50 industrial plants for peak shaving purposes in 2017. By comparing advocated technique to the linear two-step multi- objective optimization approach to IRR estimation we find no significant differences in the results for the analysed representative weeks.
Izvorni jezik
Engleski
Znanstvena područja
Elektrotehnika, Ekonomija
POVEZANOST RADA
Projekti:
EK--KK.01.1.1.04.0034 - Umreženi stacionarni baterijski spremnici energije (USBSE) (Pandžić, Hrvoje, EK ) ( CroRIS)
Ustanove:
Ekonomski fakultet, Zagreb